Are you getting monthly interest credited in your Savings Bank Account?

Some banks offer a monthly interest credit facility on individual savings bank accounts. This allows faster compounding and a host of other bank account benefits such as insurance

A savings bank account is the most common bank account used by an individual customer. Thanks to familiarity and convenience, it forms the basis for first-time interaction between the average person and their bank. An individual can maintain several types of savings accounts for various requirements. 

However, as we explore other investment avenues that are more attractive and profitable, many of us divert funds from our bank account. Consequently, the savings bank account has started to lose its sheen in recent years.

As per the Reserve Bank of India (RBI) regulations, banks are required to credit interest to the accounts of their depositors every quarter, though they can also do so every month. If you have a significant amount in your bank account, you can see your interest earnings accumulate on a monthly or quarterly basis.

The savings account interest rate is determined every month based on your average account balance, and the cumulative interest thus earned is credited to your account. The interest rate may not be credited to your account if you do not maintain the required minimum balance in your account.

What is a monthly return savings account?

A monthly return on a savings account means earning interest on your savings deposit that will be credited to your account at the end of every month. With this feature, you earn an interest income depending on your account balance and the interest rate offered to you.

IDFC FIRST Bank is among the few to launch a monthly interest credit facility on all savings accounts (SBAs) effective from 1 July 2021, which also offers customers several benefits in addition to the monthly return. Earning interest on an IDFC First Bank savings account means your savings will be compounded monthly, which can make a significant difference to your earnings over time. 

But that’s not all. You will also earn a competitive interest rate on your savings account. Get interest rate of up to 7%* p.a., depending on the balance in your savings bank account. This is quite attractive when compared to what is usually offered. As the interest is credited to your account on the first of every month, you need not wait three months.

Are there any additional benefits?

Here are some more benefits of opening a bank account with IDFC First Bank:

1. Personal Accident Insurance

Individuals with an average monthly balance of Rs 10,000 or more will be eligible for a personal accident coverage of Rs 2 lakh. If you maintain an average account balance of Rs 25,000, you will get insurance coverage up to Rs 35 lakh.

2. Air Accident Insurance

 
You also get an air accident insurance coverage of Rs 1 crore if your monthly deposit is Rs 25,000.

3. Purchase Protection

 
A particular benefit of purchase protection can also be enjoyed if you maintain an average balance of Rs 25,000.

With rising prices and expenses, your savings alone won’t be enough. You will need higher returns on your savings regularly to cope with inflation. In such cases, monthly interest credit on your savings account will ensure that your savings grow at a faster rate. Given the various expenses you incur every month, monthly interest on your savings can be a bonus for your budget that can help lessen the financial burden.

So, grab your opportunity of increasing your finances by opening a savings bank account at the earliest with IDFC First Bank!

And further keep track of all your account details using a mobile banking app.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.